Report: Volkswagen to Create Budget Brand by 2015

Volkswagen is on a tear toward world domination, currently beefing up its place in the market from little Skodas and VWs all the way to the larger-than-life Bugatti brand. Still bruised from its parting with Suzuki and still bent on dominating the world car market, the VW Group is looking to create a new brand to sell cars in developing countries.

The concept is hardly new: VW partnered with Suzuki in 2009 in an attempt to reach emerging markets like India. The partnership subsequently fell apart, which left Suzuki without VW's massive body of engineering, and VW without a partner in India. Meanwhile, Nissan brought back the Datsun name to slap on cars in emerging markets. Nissan's partner Renault, meanwhile, has a budget-friendly brand, Dacia, in many those markets.

Enter Volkswagen, which is now considering following in those footsteps. Reuters says that if Volkswagen pulls the trigger (which is not completely set yet), the brand will launch by 2015. Starting prices would range somewhere between $6500 and $12,900, and the model range would include things like a small sedan, station wagon, and van. If the project is successful, Volkswagen could then put some of those cars on sale in Europe in the hopes of driving value-minded buyers away from used cars.

Considering that emerging markets are the last frontier for VW--which has slung its many products far and wide--this could be the clincher in VW's quest to take the crown of biggest automaker in the world by 2018.

Source: Reuters

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